Lundin Mining'sets the stage for a bidding war - Report

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Lundin Mining'sets the stage for a bidding war - Report
Friday, 01 Apr 2011


Lundin Mining's move to scrap a proposed tie up with rival Inmet Mining sets the stage for a bidding war.

Analysts speculate the list of players who might vie for some or all of Lundin include Freeport, Teck Resources, Xstrata, Vedanta, Rio Tinto, First Quantum and HudBay Minerals.

Other base metal miners, including Chinese state owned entities could also join the fray, as the world's largest copper consumer is keen to secure supplies at a time when the price of the metal is near record highs.

But potential suitors have varying appetite for risk, so analysts say Lundin could attract offers for specific assets.

Lundin's mines spread from mainland Europe to Africa, the crown jewels in its portfolio are the Neves Corvo copper zinc mine in Portugal and a 24.75% stake in Freeport McMoRan's Tenke Fungurume copper cobalt mine in the Democratic Republic of Congo. The Toronto-based miner also owns the Zinkgruvan zinc mine in Sweden and the Aguablanca nickel copper mine in Spain.